fort monroe

FORSCOM INTERNAL
REVIEW

REENGINEERING

INITIATIVE

09 / 05/16

Initiative

♦ FORSCOM Viewed US AAA as Viable
Alternative to Internal Review

♦ Transfer Internal Review Spaces and
Workload to The Auditor General

- Save Money?

- Improve Effectiveness and Efficiency?

09 / 05/16

Background

♦ FORSCOM Designated Reinvention
Center

♦ Follow-on to Earlier Initiative to
Consolidate IR with IG

- Rejected Due to Legal Implications

♦ ASA(FM&C) Approved Test

♦ FORSCOM Transferred $700,000 to
USAAA for Test

09 / 05/16

Background (continued)

♦ Evaluation Plan Drafted and
Approved by

- ASA(FM&C)

- The Auditor General

- HQ, FORSCOM

♦ TIG to Lead Evaluation

♦ Evaluation Team Also Selected and
Approved by

09 / 05/16

Test

Period (ljune 1995 - 31 May 1996)

♦ Five Test Sites

(Volunteer)

- HQ, FORSCOM

- Fort Drum

- Fort Hood

- Fort Lewis

- Fort Stewart

♦ Five Control
Sites

- Fort Bragg

- Fort Campbell

- Fort Carson

- Fort Polk

- Fort Riley

09 / 05/16

5

Evaluation Criteria

♦ Objective: “To determine the most
efficient and effective means for
FORSCOM commanders to obtain
internal audit services."

♦ Success Criteria:

- Highest Return on Investment

- Highest Rate of Productivity

- Highest Degree of Customer Satisfaction

09 / 05/16

6

Eva luation Te am

♦ DAIG - Lead

♦ ASA(FM&C)

♦ US AAA

♦ HQ, FORSCOM

♦ Fort Sam Hou

09 / 05/16

7

Evaluation Methodology

♦ Products #

♦ Costs *

♦ Interviews-

♦ Questionnaire

# Productivity Data
Period - 1 October 95
thru 31 March 96

PRODUCTIVE

* Investment Data
Period - 1 August 95

thru 31 March 96

INVESTME

CUST

09 / 05/16

8

Productivity Results

♦ Total Audit
Engagements Per
Staff Year
- Internal Review -

7.89

- Command Audit -

Products

Generated During

09 / 05/16

Cost Results

♦

♦

Cost of Operations (iaugqs

- Internal Review - $826.4K

- Command Audit - $687. 8K

Purchased

- Internal Review - 1 1 .4 Staff-Years

- Command Audit - 8.5 Staff-Years

♦ Cost Per Staff-Year

- Internal Review - $52.6 difference

- Command Audit - $61.0 K 21%

09 / 05/16

10

Cost

♦ Savings Generated

- Internal Review - $1.79M Per Staff-
Year

- Command Audit - $1.46M Per Staff-

Year*

. T . J Difference

♦ Return on Investment

- Internal Review - $28.4 ti-$4

- Command Audit - $22.9 to $1*

* $8M Added as Revised Figure- Added 0.94 Per
Staff-Year

09/05/16

11

Customer Satisfaction

♦ Interviews

- All Satisfied With Services Rendered

♦ Questionnaires

- Advantage Internal Review

09/05/16

12

Summary

♦ Is Command Audit a Viable Option for
Internal Audit?

-Yes

♦ Do Test Results Indicate That Command
Audit Is The Most Effective and
Efficient Option?

- No. Internal Review Offices Cost Less
Per Staff-Year, Produced More Products
and Provided a Greater Return on
Investment for Their Commanders

09/05/16

13

Considerations Not
Addressed

♦

♦

♦

♦

♦

Legal Issues

National Performance Revi
HQ Redesign
GAO Standards
Unity of Command

09 / 05/16

14